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2019-02-13 05:12:57

RDC

Rowan Companies

$12.22

0.24 (2.00%)

05:12

02/13/19

02/13

05:12

02/13/19

05:12

Rowan Companies announces contract with Petronas Mexico

Rowan Companies announced that the Rowan Renaissance, an R-Class ultra-deepwater drillship, has been awarded a one-well contract in Mexico by PC Carigali Mexico Operations, S.A. de C.V. for an estimated duration of 80 days that is expected to commence in the second quarter of 2019. Following the initial contract term, Petronas has a one-well priced option with an estimated duration of 80 days. The Rowan Renaissance is currently under contract with Total in Mexico's Gulf of Mexico until about March 2019.

RDCRowan Companies

$12.22

0.24 (2.00%)

12/19/18

FBCO

12/19/18DOWNGRADETarget $10FBCONeutral

Rowan Companies downgraded to Neutral at Credit Suisse

As previously reported, Credit Suisse analyst James Wicklund downgraded Rowan Companies to Neutral from Outperform as he updates his sector-wide macro forecasts for a lower expected oil price. In 2019, the analyst sees the overall U.S. rig count declining by about 5%, a 5% decline in completions and a 3% decline in pressure pumping horsepower needed. Wicklund also lowered his price target on the shares to $10 from $20.

Emerging data points suggest "rocky times ahead" for the North American Oil Services and Equipment market in early 2019, Wells Fargo analyst Judson Bailey tells investors in a research note. As oil prices and macro conditions have weakened to end 2018, a number of recent conversations suggest a "quickly deteriorating" outlook for exploration and production budgets, activity levels and pricing over the first few months of 2019, adds the analyst. He believes the case for "much needed consolidation" across the U.S. oilfield services landscape "has never been greater."